How to Open a Demat and Trading Account in SBI?

How to open a demat and trading account in SBI? Recently, I received a number of emails asking how to start trading using State Bank of India (SBI) account.

Therefore, in this post, I am going to explain the complete procedure required to open your demat and trading account at SBI in a simple & easy way.

First of all, I would like to mention that you do not need to open a new SBI saving account if you already have an existing one.

You can easily link your existing SBI saving account with the demat and trading account.

However, if you do not have an SBI saving account, you can also open a 3-in-1 account i.e. a Saving + Demat + Trading account. All the three accounts will be linked here.

Documents Required:

The photocopy of the following documents are required to open your demat and trading account at SBI:

PAN CARD

Aadhar Card (for address proof)

One passport size photo

Existing SBI saving account passbook (optional)

If you remember your SBI account number and its IFSC code, then the SBI saving account passbook photocopy is not required.

You just have to fill your saving account details in the account opening form. However, its good to keep the photocopy, just in case.

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Charges in SBI Demat & Trading Account:

Here are the different charges applicable to demat and trading account in SBI. This is available on SBI smart website in the ‘Charge’ section under ‘Quick access’ – https://www.sbismart.com/customer-service

Account opening Charges for SBI Demat & Trading.

There are different plans which you can opt for while opening demat & trading accounts at SBI. However, most beginners are inclined towards the basic plan.

The basic charges for opening the demat and trading account in SBI is Rs 850 plus GST charges.

Current Cashback plan:

Nevertheless, in the basic plan, SBI is also giving a cash back up to Rs 650 on the brokerage amount if you invest/trade in the first 6 months after opening your demat and trading accounts.

For example, let’s say you bought stocks of ITC worth Rs 50,000 within 6 months after opening the account. The brokerage charge for such investment is 0.5% on your investment amount (if you are investing in ‘delivery’ i.e. holding the stocks for more than 1 day).

Here, brokerage charge will be 0.5% of Rs 50,000 = Rs 250. SBI will cash back this Rs 250 in your savings account.

As the total cash back is up to Rs 650, therefore we can say that the effective account opening charge is (Rs 1,003 – Rs 650) i.e. around Rs 350, including GST Charges.

In addition, there are few other account opening plans also available which you can discuss with your SBI local relationship manager. Different plans have different cash backs options, annual maintenance charge rates etc.

How to open a demat and trading account in SBI?

There are 3 ways in which you can open a demat and trading account in SBI as mentioned below:

Visit the local SBI branch and open the accounts there.

Fill the online application form available at SBI website.

Contact the customer care and they will help to open your demat & trading account.

Method 1:

The first way is quite effective, although a little tiresome if the local SBI branch is far from your home. However, if you are able to visit the branch, then you can easily complete all the documentation work within a day. Further, you can get all your doubts cleared regarding brokerage charges, Annual maintenance charge (AMC) etc from the representatives present at the bank.

Method 2:

The second way is good for the young generations. They can easily fill the documents and upload it online. If you want to open your demat and trading account using the SBI website, here is the link: https://www.sbismart.com/customer-service

Method 3*:

The third way is best and easiest. You just have to follow few simple steps to get your demat and trading account opened. Here are they:

Fill the contact form or call the Toll free number and give your details. They will ask your name, city, pin code, and phone number.

The local SBI Relationship manager from your city will call you within 2 working days and walk you through the process.

NOTE: You can fill be contact form by navigating on ‘CUSTOMER SERVICE’ tab and clicking on ‘OPEN AN ACCOUNT’ option present on the right side of the screen.

Otherwise, you can call the SBI customer executive at 1800-209-9345 and tell your details.

Call from Local Relationship Manager:

When your local relationship manager from your city will call, you can also request him to meet you at your address with the account opening form.

Generally, they agree to visit your desired location get the account opening form signed and collect the documents (Photocopy of PAN Card, Aadhar card & Passport size photo).

Once you have submitted the account opening form, your account will be activated within 15 days.

You will get a mail from SBI smart with your username & password along with instructions for how to start investing/trading in SBI smart.

After receiving your login credentials, you can start trading by visiting the SBI Smart website (https://www.sbismart.com) and selecting ‘Trade Login’ present in the drop-down menu on ‘login’. Enter the credentials there and start trading.

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

While opening your demat account, you would have been asked about the saving account details with which you want to link you demat accout. So, your SBI saving account must be already linked with SBISmart.

The brokerage charges in SBI is 0.5%. If you are buying stocks with total investment of Rs 3k, then you have to pay brokerage of 0.5% of 3,000 = Rs 15. Note, you have to pay this amount on both sides of transaction i.e. both buying and selling. Personally, I prefer zerodha over SBI.